This week has been quite a roller coaster in terms of price movement. Earlier this week the market had a mini $14 bull run which brought bitcoin to the pre November bubble range of $330. In my last bitcoin technical analysis I discussed how the price drop on the 15th was nothing but a bull trap. Whether the current drop will prove to be yet another bull trap is up for debate. Volume died down after the 17th and as mentioned earlier, traders were waiting on the sidelines watching out for the next wave.

The wave sure came today in the form of a quick faith test as the price dipped over $20 and touched $310. Part of the reason for the crash seems to be the emergency meeting that the EU is holding on friday regarding regulation of virtual currencies, gold, and precious metals, as a response to the recent terrorist attack. However, in light of recent news, bitcoin and encryption did not play a role in the paris attack because the Paris police found a cellphone with an unencrypted SMS saying “Let’s go, we’re starting”.